What type of business should you begin with?
You have an idea. That’s good. Now you’re on your way to make your personal vision a reality, but you don’t know where to start. Let’s simplify things for you, shall we? These 5 deciding factors will help you decide what kind of business you will start with.
EMPLOYMENT | First question, are you currently happy with your job? Be honest with yourself. Do you like the people that you work with? Starting your own small business while working full time is going to be difficult I tell you. I’ve been through that myself, wearing 2 hats at the same time, but starting your business as a side hustle can offer you added security.
TIME COMMITMENT | How much time will you devote to your business consistently? Consider every current commitment you have starting with your family, professional, voluntary work and any social commitments you may have. Will you be able to sacrifice any of them to give more time to your business, especially when you’re just starting? How about your hobbies? They eat up your time too. Making a chart to help you visualize your time will make it easier for you.
FINANCES | Many people think this is the most important factor in starting a business, which is not entirely true! I started a couple of businesses with zero capital and just using my time primarily. Do you have any type of savings? Do you have any current bad debts from your personal loans or credit card balances? Are you able to cover your monthly living expenses without a consistent income? Do you think you can qualify for a bank loan that makes sense for you with all the added interest rates? Most successful entrepreneurs have debts, but these are what we call “good debts” to have. Recognize what is good and bad debts.
RESOURCES/SUPPLIES | Do you have a steady source of your resources that you have access to for a sure period of time? How about a backup supplier? Family support, financing & mentorship are all valid types of resources too. Raw materials for your clothing business is important, and so is your manufacturing partner.
RISK TOLERANCE | This will ultimately tell you if you’re built to be an entrepreneur, because not all are built for the long haul, some are just in it for the short term hype or being one, some are looking for something more than a 9-5. Some people are more comfortable scaling up from being a freelance worker to full time, while some people such as me are Gung Ho and just jump in so eagerly with enthusiasm and never look back at all.
PRO TIP: Pick something you’re good at, have fun doing and if you’re not good at it yet, are willing to learn to be great at it.
Note: Certain employers require you to disclose any paid work you will be doing outside your full-time job. Make sure to consult your employer, employee handbook or your HR department, so you won’t get dinged for your side hustle.